--%>

Private closed economy based question

The data of columns 1 and 2 of the below table are for a private closed economy. Given the original $20 billion level of exports, determine the equilibrium GDP if imports were $10 billion greater at each level of GDP? 

 

328_Private closed economy.png

E

Expert

Verified

Imports = $40 billion: In the private open economy aggregate expenditures would fall by $10 billion at each GDP level and the new equilibrium GDP would be $300 billion.

   Related Questions in Finance Basics

  • Q : Short run and long run influence Normal

    Normal 0 false false

  • Q : Influence of opportunity costs How do

    How do opportunity costs influence the capital budgeting decision-making procedure? Opportunity costs reflect the foregone benefits of alternative not selected when a capital budgeting project is chosen. Any decrease in the cash flows of the fi

  • Q : Health finance 7.2 The audiology

    7.2 The audiology department at Randall Clinic offers many services to the clinic's patients. The three most common, along with cost and utilization data, are as follows: Service Variable Cost Annual Direct Annual # Visits per Service Fixed Costs Basic exam $5 $50,000 3,000 Advanced examination $7 $

  • Q : Compare diversifiable and non

    Compare diversifiable and non diversifiable risk. Which do you think is more significant to financial managers within a business firms?Diversifiable risk can be dealt along with by, of course, diversifying. Generally non diversifiable risk is co

  • Q : Define Trigger Trigger : An event which

    Trigger: An event which causes an action or actions. The triggers can be active (like pressing the update key to validate input to a database) or passive (like a tickler file to repeat of an activity). For illustration, budget "trigger" mechanisms hav

  • Q : What is Revenue Anticipation Notes

    Revenue Anticipation Notes (RANs): The cash management tool usually used to remove cash flow imbalances in the General Fund in a given fiscal year. The RANs are not a budget deficit-financing tool.

  • Q : Association of net present value to

    Normal 0 false false

  • Q : Supply and demand 1. Albert Jones went

    1. Albert Jones went to his local department store to purchase a pair of Levi s. He thought that the style of Levi that he wanted would sell for about $30 a pair. When he got to the store, he saw a sign which said, Levi s, all styles, $18 a pair. Albert bought three pairs of Levi s. The behavior of

  • Q : Nominal GDP and suitable price index

    Normal 0 false false

  • Q : Consolidated balance sheets for the

    In the below table you will determine consolidated balance sheets for the chartered banking system & the Bank of Canada. Employ columns 1 through 3 to show how the balance sheets would read after each of transactions a to c is finished. Analyze